After the leader of the Republican Liberal Party (PRL), António Granjo, was assassinated in the "Bloody Night" of 19 October 1921, the Liberals and Reconstituents started negotiations to merge the two parties in 1922. On 7 February 1923, the public manifesto of the Nationalist Republican Party was finally signed. The party constituted a "bloc of the Rights", intended to incorporate both conservative republicans and frustrated monarchists.[1] It was designed to challenge the power of then hegemonic Democratic Party. The adherents of PRN were predominantly proprietors, shopkeepers, militaries, public servants, physicians, and lawyers.[citation needed] It held close links with the Banco Nacional Ultramarino and other important banks and major corporations.[3]

The secession of the Liberal Republican Union in March 1926, and the beginning of the Ditadura Nacional at the end of May of the same year, marked the end of the Nationalist Republican Party. In the early 1930s many former members of the PRN joined the National Union, ruling party of the Estado Novo.